Perion Expands Publisher Technology Offering By Acquiring Vidazoo – Innovative Video Monetization Platform

The transaction is immediately accretive and should accelerate Perion’s growth Rapidly growing video advertising business; Management raises its revenue and EBITDA forecasts for 2021 and 2022

TEL AVIV, Israel & NEW YORK, October 04, 2021– (BUSINESS WIRE) – Perion Network Ltd. (NASDAQ: PERI), a global advertising technology company that offers a global solution covering the main pillars of digital advertising – search, social media, display and video / CTV – today announced the acquisition of Vidazoo, a company a leader in video technology that enables advertisers and publishers to deliver high impact content and advertising to consumers. Perion acquired Vidazoo for a total amount of $ 93.5 million, including $ 35.0 million in cash at closing with an additional maximum of $ 58.5 million structured as a performance price supplement, though some targets based on EBITDA are achieved.

Vidazoo, founded in 2014 by Daniel Slivkin, Gal Dagan and Roman Svichar, and headquartered in Tel Aviv, is a highly differentiated video monetization platform that enables digital publishers to generate additional new revenue through its unique set of products video.

“The video advertising market is huge but highly concentrated among the largest publishers and broadcasters,” said Doron Gerstel, CEO of Perion. “Just as Shopify’s platform enables thousands of stores to compete with Amazon and Walmart, Vidazoo Offers Hundreds of Video-hungry Editors Simple, Highly Scalable Plug-and-Play Video Solution. By combining our high impact video suite and Vidazoo’s unique Online Video Player (OVP), we deliver an END to END video solution, eliminating all existing middleman functions and creating a direct, simpler and transparent relationship between advertisers and publishers. “

Vidazoo’s video monetization solution is distinguished by three unique features:

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• A property in line integrated video player (OVP) and ad server, which allows publishers and brands to upload, manage and stream video content. Vidazoo’s OVP is certified with major advertising platforms and compatible with all devices and video formats. The Vidazoo OVP is integrated into a ad server, ensuring a consistent user experience by reducing latency and errors, adding to its inherent power and efficiency.

• A sophisticated performance management platform (YMP), which automatically optimizes and prioritizes direct publisher campaigns and open market demand based on specific KPIs, and which should be integrated with Perion’s smart hub (iHub).

• A rich video content and advertising Marlet, with connections to multiple content providers and over 20 programmatic platforms. Perion will expand this market with its existing purchasing relationships.

Daniel Slivkin, CEO of Vidazoo, commented, “We are delighted to join the Perion family in driving the continued growth and vision of Vidazoo video monetization technology on all screens. Thanks to Perion’s HUB, we will have direct access to high impact video campaigns, which is what premium publishers are looking for. Perion is an ideal growth partner and multiplier of opportunities, in all dimensions of our current and future business.

Raymond James acted as financial advisor to Perion.

Transaction conditions

Under the terms of the acquisition agreement, Perion acquired all of the shares of Vidazoo for $ 35.0 million in cash at closing, with an additional maximum of $ 58.5 million structured as a performance price supplement. up to 2023. Price supplements are tied to EBITDA – metric-based measures that would be paid in full if Vidazoo generated $ 32.4 million in Total Adjusted EBITDA through the end of 2023. If Vidazoo is meeting all of its performance targets until 2023, the maximum total consideration would be $ 93.5 million.

Outlook

Perion is raising its forecasts to take into account the contribution expected from the acquisition of Vidazoo, which should be immediately accretive.

Conference call

Perion management will host a ZOOM conference call today at 8:30 a.m. ET to discuss the details of the acquisition and strategic fit. Please join the call using the following Zoom link:

https://incommconferencing.zoom.us/webinar/register/WN_mipFyEiNRguVvDzDaoEDSg

You can also use the following phone numbers:

877-407-0626 Where 201-689-7835

About Perion Network Ltd.
Perion is a global technology company that delivers strategic business solutions that enable brands and advertisers to effectively “capture and convince” users across multiple platforms and channels, including Connected Interactive TV – or iCTV. Perion achieves this through its synchronized digital branding capabilities, which focus on high impact creations; monetization of content; its brand search network, in partnership with Microsoft Bing; and social media management that orchestrates and optimizes paid advertising. This diversification positions Perion for growth as budgets shift from category to category.

Non-GAAP measures
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is defined as operating income excluding stock-based compensation expenses, amortization, items related to acquisitions consisting in the amortization of intangible assets and goodwill and impairment of intangible assets, expenses related to acquisitions, gains and losses recognized on changes in the fair value of contingent consideration agreements and certain accounting entries in accordance with accounting rules relating to business combinations which require us to recognize a legal performance obligation related to the income agreements of an acquired entity based on its fair value at the date of acquisition. The purpose of these adjustments is to give an indication of our performance excluding non-cash charges and other items that are considered by management to be outside of our primary results of operations. These non-GAAP measures are among the primary factors used by management to plan and forecast future periods. In addition, non-GAAP measures are routinely used internally to understand, manage and evaluate our business and make operational decisions, and we believe they are useful to investors as a consistent and comparable measure of ongoing performance. our enterprise. However, our non-GAAP financial measures are not intended to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Due to the great variability and difficulty in making accurate predictions and projections of some of the information excluded from these projected measures, as well as some of the excluded information not being verifiable or accessible, we are unable to quantify certain amounts that would be required for such presentation without unreasonable effort. Therefore, no reconciliation of prospective non-GAAP financial measures is included. A reconciliation between historical GAAP and non-GAAP financial measures is included in a Form 6-K provided to the Securities and Exchange Commission. A reconciliation between historical GAAP and non-GAAP financial measures is included in a Form 6-K provided to the Securities and Exchange Commission.

Forward-looking statements
This press release contains historical information and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the business, financial condition and results of operations of Perion. The words “will”, “believe”, “expect”, “intend”, “plan”, “should” and similar expressions are intended to identify forward-looking statements. These statements reflect Perion’s current beliefs, assumptions and expectations with respect to future events and are subject to risks and uncertainties. Many factors could cause Perion’s actual results, performance or achievements to differ materially from future results, performance or achievements that could be expressed or implied by such forward-looking statements or financial information, including, among others, the failure to realize the expected benefits of the companies and businesses that we have acquired and that we may acquire in the future, including Vidazoo, the risks associated with the integration of the companies and businesses that we acquire, including employee retention and customer acceptance; the risk that such transactions divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, the potential litigation associated with such transactions, and the general risks associated with Perion’s business , including intense and frequent changes in the markets in which companies operate and in general economic and business conditions, loss of key customers, unpredictable sales cycles, competitive pressures, market acceptance of new products, failure to meet efficiency and cost reduction goals, changes in business strategy and various other factors whether or not referenced in this press release. Various other risks and uncertainties may affect Perion and its results of operations, as described in reports filed by Perion with the Securities and Exchange Commission from time to time, including its annual report on Form 20-F for the year ended. on December 31, 2020 filed with the SEC on March 25, 2021. Perion assumes no obligation to update these forward-looking statements.

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Contacts

Perion Network Ltd.
Rami Rozen, Vice President of Investor Relations
+972 (52) 5694441
ramir@perion.com